DFM Company posts Dh200 million net profit in H1 2015

Dubai Financial Market Company (PJSC) on Monday announced its financial results for the first half of the year ending  June 30, 2015, recording a net profit of Dh200 million, compared to Dh 467.6 million during the corresponding period of 2014, a 57 per cent decrease.

The net profit of the second quarter 2015 reached Dh132.4 million, a 48 per cent decrease compared to Q2- 2014 level of Dh252.5 million.

The company recorded total revenue of Dh 292.6 million in H1-2015 compared to Dh552.1 million during H1 2014. The revenue comprised of Dh259.8 million of operating income and Dh 32.8 million of investment returns. The company’s expenses reached Dh92.5 million compared to Dh84.5 million recorded during H1-2014. During the second quarter of 2015, the company’s revenue reached Dh178.1 million compared to Dh296.5 million in the second quarter of 2014, whilst expenses amounted to Dh 45.7 million in the same period compared to Dh44 million during Q2- 2014.

DFM’s trading value decreased 56 per cent to Dh 103 billion during the first six months of this year compared to Dh237 billion in the corresponding half of last year. Trading commissions represent the main revenue stream of the DFM Company.

Essa Kazim, chairman of Dubai Financial Market (PJSC), said, "DFM trading activity has relatively improved during the second quarter of the year overcoming the sharp decline that prevailed during the first quarter, which saw trading value down 65 per cent to Dh38 billion compared to Dh110 billion during the corresponding quarter of the past year. The first quarter’s drop has been triggered by some unfavourable circumstances unrelated to the sound fundamentals of our economy, specifically the sharp fall of oil prices. On the other hand, the 65 per cent increase in the average of daily trading value during the second quarter compared to its predecessor clearly indicates the market’s high level of resiliency, its ability to sustain attractiveness of investors and restoring the normal level of activity."

He added, "We are looking forward to see further activity through the remaining period of this year supported by the strong economic indicators, the comprehensive market infrastructure as well as its well-diversified investment opportunities. The DFM has successfully maintained its attractiveness for issuers looking to list as we have welcomed the listing of Damac Properties, the most recent addition to our issuers’ list during the first half of the year, which has also seen the resumption of trading on Amlak Finance. We are looking forward to further diversify our listed companies building on the significant listing activity during the second half of last year, which saw the market receiving four new listings from unrepresented sectors in the market including tourism, healthcare, education and retail. This development further boosts the success of DFM’s strategy to achieve the best possible representation of Dubai’s economy".

Highlighting some of the first half milestones, Kazim said, "The DFM sustained its development efforts aimed at enhancing market infrastructure according to the international practices. Within this context, DFM has implemented an enhanced pre-closing session arrangement as well as Trading At Last session (TAL) last May, as part of its pursuit to cope with international practices subsequent to the inclusion of the UAE into the MSCI’s Emerging Market category.

 He said the DFM has launched a comprehensive online gateway (eService) that enables investors to accomplish 15 services, representing 73 per cent of DFM investor services efficiently through mobile applications as well as the website, as part of our commitment to provide investors with smart solutions. The investor eServices is one of the main pillars of DFM’s ‘Smart Borse’ project, currently underway, in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai.

"As part of our constant efforts to further strengthen links between listed companies and international investors through an efficient platform that enables companies to enlighten investors on its latest development and plans for growth, the DFM organised its International Investor Roadshow in London last April. The event has achieved outstanding success through the participation of international institutions with $ 3 trillion assets under management globally, as they are increasingly attracted to the sizable opportunities available on our market," Kazim said.

Kazim noted that having 58 international institutions, including 26 new institutions, seeking to connect with DFM Company immediately after the event, which applies to other participating companies as well, provides the strongest indication of the greater importance of DFM amongst international investors. “We will carry on with our efforts to connect with international investors through roadshows in global financial centres and consider organising similar events in the Far East as part of our quest to attract further liquidity and keep international funds well-informed of DFM opportunities,” he said.
 

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